Securities and Exchange Board of India (SEBI) has amended its insider trading norms

Current Context: SEBI (Securities and Exchange Board of India) recently made changes to its insider trading norms on 23rd June 2024.

• Here are the key points:
• Flexibility for Trading Plans: The new norms allow insiders to execute trading plans with more flexibility. According to the PIT Regulations (Prohibition of Insider Trading), an insider may trade in a company’s securities if the compliance officer approves their trading plan.
• Mutual Funds Disclosure: SEBI also amended the rules to include mutual funds. Asset management companies (AMCs) now need to disclose details of holdings in their mutual fund schemes, aggregated by the AMC, trustees, and their immediate relatives on stock exchange platforms.
• These changes aim to enhance transparency and accountability in the securities market.

Question:

1 According to the new SEBI norms, who needs to approve an insider’s trading plan?

• A) The Board of Directors
• B) The Compliance Officer
• C) The CEO of the company
• D) The SEBI Chairperson

Answer: B) According to the PIT Regulations (Prohibition of Insider Trading), an insider may trade in a company’s securities if the compliance officer approves their trading plan.